Our opportunity is that we are still in a period of relative economic growth. At the same time, we see that such a downturn also gives us more opportunities for cheap land, and we also see that Now, with the changes in the capital market, we have also been given opportunities for real estate companies and some industries to integrate. In other words, for all of us, it is not only that we have to find our own position in such a challenge, but more importantly There are some effective financing methods and paths, especially for small and medium-sized real estate companies. It is relatively easy for large companies to obtain financing, such as bank loans, bond issuance and other aspects. For small and medium-sized enterprises, how should we seize the opportunity? In such a highly competitive and challenging environment, finding some opportunities that are most suitable for our development is also something we have to consider.

We have seen some financing paths and methods provided in China’s capital market, including not only bank loans and equity financing, but also IPO and M&A financing, as well as REITs, which are typical assets. For securitization products, on September 26, the China Securities Regulatory Commission issued the management measures for asset securitization, which set out the basic conditions for asset securitization. For example, in the development of real estate, especially commercial real estate and industrial real estate, there should be opportunities to Self-sustaining properties are subject to asset securitization. Asset securitization is conditional. More importantly, you must have a certain scale of commercial real estate, such as unsecured loans, and a commercial real estate with good overall operating results. At the same time, we look at Your rental income and property growth income are relatively mature, and it is relatively easy for such companies to use them for asset securitization.

Soon there will be REITs for government low-rent housing. The income collected will also increase the price of low-rent housing. Low-rent housing will have the conditions to issue REITs. These aspects will have a great impact on our future. Issuing asset securitization products can create a very good condition. This is a question of mixed concepts.

For example, take the Tianlang Hotel. This property is owned by the Tianlang Group, but it is leased to a hotel management company for management. The same is true for office buildings. If the asset size is larger, it can be equipped with REITs. Issuance conditions, but the prerequisite is that the entire property is integral, the lease has the ability to grow, and there cannot be pledges or guarantees. It cannot be said that if the house is pledged to others, it cannot meet the needs of REITs issuance. Of course, asset securitization products include more than REITs also include financial asset securitization products, but whether it is commercial real estate, industrial real estate, or low-rent housing leasing, these REITs products are REITs reflected in the real estate industry, including our office in Beijing. China Central Center has three office buildings, two of which are owned by Japanese REITs. REITs were issued in Hong Kong, including Wanda, SOHO China, and other real estate developers. Why did they buy commercial real estate and office buildings in the past, but not now? Sold? In fact, it is put into the bag and lays the foundation for the issuance of REITs.

The second financing method is a down-to-earth financing method, which is how Internet finance can help small and medium-sized developers in financing. Small and medium-sized developers are also building P2P websites. The future development trend of Internet finance is It is irreversible. Currently, there are more than 1,200 P2P websites in China, but while there will be 20 or 30 new websites every month, there will also be 20 or 30 that will run away or go bankrupt. There have been 28 companies running away in just one month, and the risk is very high. But for real estate companies and related companies, how can we take advantage of the development trend of Internet finance to truly make good use of such a platform of Internet finance and use Internet finance to solve the problem? What is the problem? It is to allow small and medium-sized enterprises or small investors to obtain different benefits through such a platform. For example, all of us here are high-net-worth individuals. You will not invest in P2P products because your products are all on the In the bank, you can buy a bank trust product, or you may have your own method, but for migrant workers, there is no such way. They save a little money every month, and the income is very low. If there is a P2P platform, I You can get it for almost 3 months, and you can get an annual interest rate of 10%. This is very welcome to everyone. The people and ordinary people around you will use the P2P platform to obtain greater returns, at least higher than those of banks. There are a lot of risks, and of course the risks are also very high. People don’t know which P2P is good, so there is a question of choosing.

Nowadays, P2P keeps popping up and running away, causing migrant workers to not dare to put their money in P2P. This meets the investment needs of small and medium investors and medium and micro investors. The second one meets the needs of some different enterprises in society, including developers, such as small and medium-sized developers. We have the opportunity to use this P2P. It seems that there are few investors and the amount is small, but it is a crowdfunding concept, which is good for For most ordinary people, it is still okay to switch to P2P. The concept of crowdfunding concentrates the needs of different investors on the platform.

As a real estate development company, how should we use this funds? It may lead to illegal fund-raising. The concept of P2P is the transfer of claims. The so-called transfer of claims means that if you have claims, if you have some share of the claims in your project, or if you have 10 million, you can Divide it into 1 million. Under the current situation, with the development of P2P platforms in the future, if you have 100 million, you can split it into 10 million. Ten million targets are currently relatively common on P2P. It is necessary to improve the risk control of creditor's rights transfer. , consider that the money you borrowed is not from the bank. If the bank money cannot be repaid, the bank can blacklist you. If the P2P money cannot be repaid, you will cause social impact. You must understand whether this project is real. If you have the ability to use P2P, the risks must be controlled.

The third is to repay it in a timely manner. Be sure to explain clearly to investors where the money has gone to ensure transparency in the use of funds. Therefore, when it comes to risks, sometimes you have to tell the migrant worker brother in advance before you invest. Which part of the 1,000 yuan is invested in the 10 million real estate project? What are the risks and benefits of this project? Is your fund a priority or a lag level? That is, the transparency of the use of your project must be To ensure it, we say that the P2P platform itself does not mean that it cannot be used, but that we must use it strategically.

We all want to talk about a question here. Can we pay special attention to it? Let’s build a P2P website ourselves, and I will use the funds raised by myself. Of course, I can build it myself, or someone may invest. But where are the risks and where is your independence? If there is no independence, if I build a P2P platform to finance my own projects, the risk may be greater. P2P platforms must not establish fund pools, and fund accounts cannot be in P2P. On the platform account, once you build a fund pool and cannot repay it, the China Banking Regulatory Commission will solve your problem next. After we have a comprehensive understanding of Internet finance, we can make some new breakthroughs in these aspects. It is also one of the issues that a considerable number of our small and medium-sized real estate companies can pay attention to.

For real estate companies, the combination of Internet finance and grassroots finance is often a means that small and medium-sized real estate companies can use. In addition to Internet finance, small and medium-sized real estate companies can consider using it. What can you continue to use? It is the fund model and method of equity investment. 2011 is the first year of real estate equity investment funds. In recent years, it has increased to 450 billion. The advantage of equity investment funds is that they will be more flexible, including the funds for acquiring land. It can be used through equity investment funds, but there is a restriction on equity investment funds, that is, a limited partnership can only have 50 people, and the maximum number of investors is 50. If you exceed 50, you can no longer do it. This is a restriction. If you want to raise a Billion, 50 people must invest at least 2 million. This is a requirement. Of course, you can also put a trust institution on top of the limited partnership, so that you can have better arrangements.

The structure of a real estate investment fund is different from that of a real estate developer's limited company. On the one hand, we see that it has a manager, and on the other hand, it is an LP. The LP is called a limited partner. We, as LP investors, , if you invest funds in a limited partnership, the limited partnership can directly invest 100 million or 200 million in real estate developer projects. What is its structure? The limited partnership has 300 million yuan, and 10 million yuan can be invested in the project company as equity. Then the real estate developer promises that I will buy back 20% after one year. Then for the fund, the rate of return is 20%, and there are two 100 million, you can enter the invested enterprise in the form of a creditor's right. According to the agreement, it can not be higher than 4 times the bank interest rate for the same period. Of course, the real estate group company can provide guarantee, which is acceptable.

The use of equity investment funds is much looser than trusts. Trusts require at least 20 or 30. Its requirements will be regulated by the China Banking Regulatory Commission and the China Securities Regulatory Commission. Equity investment products are relatively more manageable. Loose, now registered with the China Securities Regulatory Commission, equity investment is relatively flexible in all aspects of real estate development, whether it is land acquisition projects or self-owned real estate projects, because the current development of commercial real estate has given everyone more opportunities. At that time, in order to avoid taxes, I raised some more capital and could hold it myself.

After equity investment funds arrive at the company, it actually reduces your asset-liability ratio, so from these aspects, there should be more opportunities for us to develop. In fact, for real estate companies, I feel that equity investment The development of capital in China should be a very good path, and we are talking about different paths.

Many foreign funds in China, including overseas, have used the concept of layered funds on a very large scale. If it is made into three plus one, it is often either layered or equity. Investment funds, because the development project lasts for 3 or 4 years. Through the three plus one fund, I became one of the major shareholders of the development project. We invested 80% and the developer invested 20%. Let’s do it together. Project, I invest 300 million in this project, you invest 100 million, and then my 300 million accounts for 75%, and you account for 25%. Although you account for 25%, I promise that 15% of my 75% can be repaid as profit. , although you have 25% investment, the profit you distribute is 40% of the profit, which is also a good deal.

We see that in the future development process of equity investment funds, I think there should be many links in China. I recently invested in a very large project in Sydney, and we want to establish a global investment fund in the CBD. For the third China Center, when I was negotiating with the existing properties of the China Center, I found that the six buildings were all over 20 or 30 years old. Four of the buildings to be demolished were owned by funds. Likewise, In New York and London, two-thirds of some office buildings and apartments are held by funds. From this point of view, we have seen some development prospects for China Future Equity Investment Fund to hold these income-generating properties.

In Beijing CBD, if you want to find an office building and a fund wants to acquire it, it is extremely rare. There is also such an opportunity in Xi'an. Can we issue a fund with a scale of say 1 billion to hold office buildings? The developer may not be sure about this office building, but the developer may want to sell it. The sales price may be 1.5 billion. The fund can buy it out. Can 1.2 billion be used? After the fund holds it, I can ask a professional organization to manage the entire property. As the level increases, the overall value of the property is also increasing, so apartments, office buildings, and other effective commercial real estate in the entire real estate market should be huge business opportunities in the future.

In this regard, we see various opportunities, and we should all have them. In addition to banks, our securities institutions also need to intervene. Asset companies also have some asset management plans, including equity investment funds. The management model is getting larger and larger now. You can make better arrangements based on which resources you are familiar with. We have seen that a considerable number of real estate companies are also making strategic shifts. How can we have more opportunities, ensuring that not only development, but also real estate investment funds can be done. Can PE funds be diversified? I will also participate in some. Mr. Sun mentioned that corporate diversification is a potential for future development, but diversification is not necessarily the case. I run it myself, I invest and I run it. Investment is also one of the diversified models. I only choose the best in the industry, and I don’t run the business. As investors, we sometimes feel the flexibility of investment. We invested in a lot of real estate projects last year, but we have reduced them a lot this year. My focus this year is on additional funds, merger and acquisition funds, and global asset allocation funds, which will be relatively flexible.

At the same time, there is a particularly good model that everyone should study, which is the PPP model. This is a new model just launched by the Ministry of Finance. The concept of this model is the financial model of each province and city. Financing platforms, now with Document No. 43, have stopped issuing bonds, including Xi'an. Xi'an Construction Engineering Group used to be the main body of its own bond issuance, but now it cannot let it issue bonds. What should we do? We need to use a P2P-free model. For example, the investment projects in Yuncheng, the railway from Yuncheng Datong to Xi'an, and the 2,500 acres of land in front of the station square were originally things that the government should do, but now that the government has not done it, who has done it? When our developers do it, there will be some opportunities. In the process of developers doing it, we see more of them using the P2P model. Government issues come and go from different funding sources* **Tongde Development, we accounted for 60% of this project, and local developers accounted for 40%. We also used the fund model. This model is also very good. Now we have 1,200 acres of land in our hands, and we are still working on it. For some promotions, there is also a first-level land development model for Chinese businessmen. If you have the opportunity, you can go to Yuncheng to see this land. It is currently the lowest price. Those who came to the meeting today, for all the first 10 people who have made reservations with Mr. Ding, Mr. Ding, you All have to give the lowest price.

The PPP model can not only be used for the construction of public facilities in high-speed rail plazas, but also for water supply and power supply. This model can also be used for low-rent housing, but the premise must be understood that it is private investment. , run your own business, legal and government responsibilities will be borne by the government. You can learn more about this in the future